*SB0111.2*
Reprinted
January 29, 2025
SENATE BILL No. 111
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DIGEST OF SB 111 (Updated January 28, 2025 2:32 pm - DI 154)
Citations Affected: IC 27-4; IC 27-8.
Synopsis: Coverage for living organ donors. Prohibits an insurer that
issues a policy of life insurance, disability insurance, or long term care
insurance from taking certain actions with respect to the coverage of
individuals who are living organ donors. Specifies that certain actions
constitute an unfair and deceptive act and practice in the business of
insurance when taken against a living organ donor by an insurer.
Effective: July 1, 2025.
Charbonneau, Baldwin, Hunley,
Yoder, Jackson L, Ford J.D., Bohacek,
Randolph Lonnie M, Becker,
Niezgodski, Pol Jr., Qaddoura,
Taylor G, Spencer, Walker K
January 8, 2025, read first time and referred to Committee on Insurance and Financial
Institutions.
January 16, 2025, reported favorably — Do Pass.
January 21, 2025, read second time, ordered engrossed. Engrossed.
January 23, 2025, returned to second reading.
January 28, 2025, re-read second time, amended, ordered engrossed.
SB 111—LS 6295/DI 154 Reprinted
January 29, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 111
A BILL FOR AN ACT to amend the Indiana Code concerning
insurance.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 27-4-1-4, AS AMENDED BY P.L.158-2024,
2 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 4. (a) The following are hereby defined as unfair
4 methods of competition and unfair and deceptive acts and practices in
5 the business of insurance:
6 (1) Making, issuing, circulating, or causing to be made, issued, or
7 circulated, any estimate, illustration, circular, or statement:
8 (A) misrepresenting the terms of any policy issued or to be
9 issued or the benefits or advantages promised thereby or the
10 dividends or share of the surplus to be received thereon;
11 (B) making any false or misleading statement as to the
12 dividends or share of surplus previously paid on similar
13 policies;
14 (C) making any misleading representation or any
15 misrepresentation as to the financial condition of any insurer,
16 or as to the legal reserve system upon which any life insurer
17 operates;
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1 (D) using any name or title of any policy or class of policies
2 misrepresenting the true nature thereof; or
3 (E) making any misrepresentation to any policyholder insured
4 in any company for the purpose of inducing or tending to
5 induce such policyholder to lapse, forfeit, or surrender the
6 policyholder's insurance.
7 (2) Making, publishing, disseminating, circulating, or placing
8 before the public, or causing, directly or indirectly, to be made,
9 published, disseminated, circulated, or placed before the public,
10 in a newspaper, magazine, or other publication, or in the form of
11 a notice, circular, pamphlet, letter, or poster, or over any radio or
12 television station, or in any other way, an advertisement,
13 announcement, or statement containing any assertion,
14 representation, or statement with respect to any person in the
15 conduct of the person's insurance business, which is untrue,
16 deceptive, or misleading.
17 (3) Making, publishing, disseminating, or circulating, directly or
18 indirectly, or aiding, abetting, or encouraging the making,
19 publishing, disseminating, or circulating of any oral or written
20 statement or any pamphlet, circular, article, or literature which is
21 false, or maliciously critical of or derogatory to the financial
22 condition of an insurer, and which is calculated to injure any
23 person engaged in the business of insurance.
24 (4) Entering into any agreement to commit, or individually or by
25 a concerted action committing any act of boycott, coercion, or
26 intimidation resulting or tending to result in unreasonable
27 restraint of, or a monopoly in, the business of insurance.
28 (5) Filing with any supervisory or other public official, or making,
29 publishing, disseminating, circulating, or delivering to any person,
30 or placing before the public, or causing directly or indirectly, to
31 be made, published, disseminated, circulated, delivered to any
32 person, or placed before the public, any false statement of
33 financial condition of an insurer with intent to deceive. Making
34 any false entry in any book, report, or statement of any insurer
35 with intent to deceive any agent or examiner lawfully appointed
36 to examine into its condition or into any of its affairs, or any
37 public official to which such insurer is required by law to report,
38 or which has authority by law to examine into its condition or into
39 any of its affairs, or, with like intent, willfully omitting to make a
40 true entry of any material fact pertaining to the business of such
41 insurer in any book, report, or statement of such insurer.
42 (6) Issuing or delivering or permitting agents, officers, or
SB 111—LS 6295/DI 154 3
1 employees to issue or deliver, agency company stock or other
2 capital stock, or benefit certificates or shares in any common law
3 corporation, or securities or any special or advisory board
4 contracts or other contracts of any kind promising returns and
5 profits as an inducement to insurance.
6 (7) Making or permitting any of the following:
7 (A) Unfair discrimination between individuals of the same
8 class and equal expectation of life in the rates or assessments
9 charged for any contract of life insurance or of life annuity or
10 in the dividends or other benefits payable thereon, or in any
11 other of the terms and conditions of such contract. However,
12 in determining the class, consideration may be given to the
13 nature of the risk, plan of insurance, the actual or expected
14 expense of conducting the business, or any other relevant
15 factor.
16 (B) Unfair discrimination between individuals of the same
17 class involving essentially the same hazards in the amount of
18 premium, policy fees, assessments, or rates charged or made
19 for any policy or contract of accident or health insurance or in
20 the benefits payable thereunder, or in any of the terms or
21 conditions of such contract, or in any other manner whatever.
22 However, in determining the class, consideration may be given
23 to the nature of the risk, the plan of insurance, the actual or
24 expected expense of conducting the business, or any other
25 relevant factor.
26 (C) Excessive or inadequate charges for premiums, policy
27 fees, assessments, or rates, or making or permitting any unfair
28 discrimination between persons of the same class involving
29 essentially the same hazards, in the amount of premiums,
30 policy fees, assessments, or rates charged or made for:
31 (i) policies or contracts of reinsurance or joint reinsurance,
32 or abstract and title insurance;
33 (ii) policies or contracts of insurance against loss or damage
34 to aircraft, or against liability arising out of the ownership,
35 maintenance, or use of any aircraft, or of vessels or craft,
36 their cargoes, marine builders' risks, marine protection and
37 indemnity, or other risks commonly insured under marine,
38 as distinguished from inland marine, insurance; or
39 (iii) policies or contracts of any other kind or kinds of
40 insurance whatsoever.
41 However, nothing contained in clause (C) shall be construed to
42 apply to any of the kinds of insurance referred to in clauses (A)
SB 111—LS 6295/DI 154 4
1 and (B) nor to reinsurance in relation to such kinds of insurance.
2 Nothing in clause (A), (B), or (C) shall be construed as making or
3 permitting any excessive, inadequate, or unfairly discriminatory
4 charge or rate or any charge or rate determined by the department
5 or commissioner to meet the requirements of any other insurance
6 rate regulatory law of this state.
7 (8) Except as otherwise expressly provided by IC 27-1-47 or
8 another law, knowingly permitting or offering to make or making
9 any contract or policy of insurance of any kind or kinds
10 whatsoever, including but not in limitation, life annuities, or
11 agreement as to such contract or policy other than as plainly
12 expressed in such contract or policy issued thereon, or paying or
13 allowing, or giving or offering to pay, allow, or give, directly or
14 indirectly, as inducement to such insurance, or annuity, any rebate
15 of premiums payable on the contract, or any special favor or
16 advantage in the dividends, savings, or other benefits thereon, or
17 any valuable consideration or inducement whatever not specified
18 in the contract or policy; or giving, or selling, or purchasing or
19 offering to give, sell, or purchase as inducement to such insurance
20 or annuity or in connection therewith, any stocks, bonds, or other
21 securities of any insurance company or other corporation,
22 association, limited liability company, or partnership, or any
23 dividends, savings, or profits accrued thereon, or anything of
24 value whatsoever not specified in the contract. Nothing in this
25 subdivision and subdivision (7) shall be construed as including
26 within the definition of discrimination or rebates any of the
27 following practices:
28 (A) Paying bonuses to policyholders or otherwise abating their
29 premiums in whole or in part out of surplus accumulated from
30 nonparticipating insurance, so long as any such bonuses or
31 abatement of premiums are fair and equitable to policyholders
32 and for the best interests of the company and its policyholders.
33 (B) In the case of life insurance policies issued on the
34 industrial debit plan, making allowance to policyholders who
35 have continuously for a specified period made premium
36 payments directly to an office of the insurer in an amount
37 which fairly represents the saving in collection expense.
38 (C) Readjustment of the rate of premium for a group insurance
39 policy based on the loss or expense experience thereunder, at
40 the end of the first year or of any subsequent year of insurance
41 thereunder, which may be made retroactive only for such
42 policy year.
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1 (D) Paying by an insurer or insurance producer thereof duly
2 licensed as such under the laws of this state of money,
3 commission, or brokerage, or giving or allowing by an insurer
4 or such licensed insurance producer thereof anything of value,
5 for or on account of the solicitation or negotiation of policies
6 or other contracts of any kind or kinds, to a broker, an
7 insurance producer, or a solicitor duly licensed under the laws
8 of this state, but such broker, insurance producer, or solicitor
9 receiving such consideration shall not pay, give, or allow
10 credit for such consideration as received in whole or in part,
11 directly or indirectly, to the insured by way of rebate.
12 (9) Requiring, as a condition precedent to loaning money upon the
13 security of a mortgage upon real property, that the owner of the
14 property to whom the money is to be loaned negotiate any policy
15 of insurance covering such real property through a particular
16 insurance producer or broker or brokers. However, this
17 subdivision shall not prevent the exercise by any lender of the
18 lender's right to approve or disapprove of the insurance company
19 selected by the borrower to underwrite the insurance.
20 (10) Entering into any contract, combination in the form of a trust
21 or otherwise, or conspiracy in restraint of commerce in the
22 business of insurance.
23 (11) Monopolizing or attempting to monopolize or combining or
24 conspiring with any other person or persons to monopolize any
25 part of commerce in the business of insurance. However,
26 participation as a member, director, or officer in the activities of
27 any nonprofit organization of insurance producers or other
28 workers in the insurance business shall not be interpreted, in
29 itself, to constitute a combination in restraint of trade or as
30 combining to create a monopoly as provided in this subdivision
31 and subdivision (10). The enumeration in this chapter of specific
32 unfair methods of competition and unfair or deceptive acts and
33 practices in the business of insurance is not exclusive or
34 restrictive or intended to limit the powers of the commissioner or
35 department or of any court of review under section 8 of this
36 chapter.
37 (12) Requiring as a condition precedent to the sale of real or
38 personal property under any contract of sale, conditional sales
39 contract, or other similar instrument or upon the security of a
40 chattel mortgage, that the buyer of such property negotiate any
41 policy of insurance covering such property through a particular
42 insurance company, insurance producer, or broker or brokers.
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1 However, this subdivision shall not prevent the exercise by any
2 seller of such property or the one making a loan thereon of the
3 right to approve or disapprove of the insurance company selected
4 by the buyer to underwrite the insurance.
5 (13) Issuing, offering, or participating in a plan to issue or offer,
6 any policy or certificate of insurance of any kind or character as
7 an inducement to the purchase of any property, real, personal, or
8 mixed, or services of any kind, where a charge to the insured is
9 not made for and on account of such policy or certificate of
10 insurance. However, this subdivision shall not apply to any of the
11 following:
12 (A) Insurance issued to credit unions or members of credit
13 unions in connection with the purchase of shares in such credit
14 unions.
15 (B) Insurance employed as a means of guaranteeing the
16 performance of goods and designed to benefit the purchasers
17 or users of such goods.
18 (C) Title insurance.
19 (D) Insurance written in connection with an indebtedness and
20 intended as a means of repaying such indebtedness in the
21 event of the death or disability of the insured.
22 (E) Insurance provided by or through motorists service clubs
23 or associations.
24 (F) Insurance that is provided to the purchaser or holder of an
25 air transportation ticket and that:
26 (i) insures against death or nonfatal injury that occurs during
27 the flight to which the ticket relates;
28 (ii) insures against personal injury or property damage that
29 occurs during travel to or from the airport in a common
30 carrier immediately before or after the flight;
31 (iii) insures against baggage loss during the flight to which
32 the ticket relates; or
33 (iv) insures against a flight cancellation to which the ticket
34 relates.
35 (14) Refusing, because of the for-profit status of a hospital or
36 medical facility, to make payments otherwise required to be made
37 under a contract or policy of insurance for charges incurred by an
38 insured in such a for-profit hospital or other for-profit medical
39 facility licensed by the Indiana department of health.
40 (15) Refusing to insure an individual, refusing to continue to issue
41 insurance to an individual, limiting the amount, extent, or kind of
42 coverage available to an individual, or charging an individual a
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1 different rate for the same coverage, solely because of that
2 individual's blindness or partial blindness, except where the
3 refusal, limitation, or rate differential is based on sound actuarial
4 principles or is related to actual or reasonably anticipated
5 experience.
6 (16) Committing or performing, with such frequency as to
7 indicate a general practice, unfair claim settlement practices (as
8 defined in section 4.5 of this chapter).
9 (17) Between policy renewal dates, unilaterally canceling an
10 individual's coverage under an individual or group health
11 insurance policy solely because of the individual's medical or
12 physical condition.
13 (18) Using a policy form or rider that would permit a cancellation
14 of coverage as described in subdivision (17).
15 (19) Violating IC 27-1-22-25, IC 27-1-22-26, or IC 27-1-22-26.1
16 concerning motor vehicle insurance rates.
17 (20) Violating IC 27-8-21-2 concerning advertisements referring
18 to interest rate guarantees.
19 (21) Violating IC 27-8-24.3 concerning insurance and health plan
20 coverage for victims of abuse.
21 (22) Violating IC 27-8-26 concerning genetic screening or testing.
22 (23) Violating IC 27-1-15.6-3(b) concerning licensure of
23 insurance producers.
24 (24) Violating IC 27-1-38 concerning depository institutions.
25 (25) Violating IC 27-8-28-17(c) or IC 27-13-10-8(c) concerning
26 the resolution of an appealed grievance decision.
27 (26) Violating IC 27-8-5-2.5(e) through IC 27-8-5-2.5(j) (expired
28 July 1, 2007, and removed) or IC 27-8-5-19.2 (expired July 1,
29 2007, and repealed).
30 (27) Violating IC 27-2-21 concerning use of credit information.
31 (28) Violating IC 27-4-9-3 concerning recommendations to
32 consumers.
33 (29) Engaging in dishonest or predatory insurance practices in
34 marketing or sales of insurance to members of the United States
35 Armed Forces as:
36 (A) described in the federal Military Personnel Financial
37 Services Protection Act, P.L.109-290; or
38 (B) defined in rules adopted under subsection (b).
39 (30) Violating IC 27-8-19.8-20.1 concerning stranger originated
40 life insurance.
41 (31) Violating IC 27-2-22 concerning retained asset accounts.
42 (32) Violating IC 27-8-5-29 concerning health plans offered
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1 through a health benefit exchange (as defined in IC 27-19-2-8).
2 (33) Violating a requirement of the federal Patient Protection and
3 Affordable Care Act (P.L. 111-148), as amended by the federal
4 Health Care and Education Reconciliation Act of 2010 (P.L.
5 111-152), that is enforceable by the state.
6 (34) After June 30, 2015, violating IC 27-2-23 concerning
7 unclaimed life insurance, annuity, or retained asset account
8 benefits.
9 (35) Willfully violating IC 27-1-12-46 concerning a life insurance
10 policy or certificate described in IC 27-1-12-46(a).
11 (36) Violating IC 27-1-37-7 concerning prohibiting the disclosure
12 of health care service claims data.
13 (37) Violating IC 27-4-10-10 concerning virtual claims payments.
14 (38) Violating IC 27-1-24.5 concerning pharmacy benefit
15 managers.
16 (39) Violating IC 27-7-17-16 or IC 27-7-17-17 concerning the
17 marketing of travel insurance policies.
18 (40) Violating IC 27-1-49 concerning individual prescription drug
19 rebates.
20 (41) Violating IC 27-1-50 concerning group prescription drug
21 rebates.
22 (42) Violating IC 27-8-36 concerning living organ donor
23 insurance coverage and organ donation.
24 (b) Except with respect to federal insurance programs under
25 Subchapter III of Chapter 19 of Title 38 of the United States Code, the
26 commissioner may, consistent with the federal Military Personnel
27 Financial Services Protection Act (10 U.S.C. 992 note), adopt rules
28 under IC 4-22-2 to:
29 (1) define; and
30 (2) while the members are on a United States military installation
31 or elsewhere in Indiana, protect members of the United States
32 Armed Forces from;
33 dishonest or predatory insurance practices.
34 SECTION 2. IC 27-8-36 IS ADDED TO THE INDIANA CODE AS
35 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
36 1, 2025]:
37 Chapter 36. Coverage for Living Organ Donors
38 Sec. 1. As used in this chapter, "individual" means a natural
39 person.
40 Sec. 2. As used in this chapter, "insurance policy" means:
41 (1) a policy of life insurance or disability insurance described
42 in Class 1 of IC 27-1-5-1; and
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1 (2) a long term care insurance policy (as defined in
2 IC 27-8-12-5).
3 Sec. 3. As used in this chapter, "insurer" means an insurance
4 company that issues an insurance policy.
5 Sec. 4. As used in this chapter, "living organ donor" means an
6 individual who:
7 (1) has donated all or part of an organ; and
8 (2) is not deceased.
9 Sec. 5. As used in this chapter, "organ" means a human:
10 (1) kidney;
11 (2) liver; or
12 (3) lung.
13 Sec. 6. An insurer may not do any of the following:
14 (1) Decline or limit coverage of an individual under an
15 insurance policy solely because the individual is a living organ
16 donor.
17 (2) Preclude an insured individual from donating all or part
18 of an organ as a condition of receiving or continuing to
19 receive an insurance policy.
20 (3) Discriminate in the offering, issuance, cancellation,
21 amount of coverage, price, or any other condition of an
22 insurance policy for an individual based solely, and without
23 any additional actuarial risks, upon the status of the
24 individual as a living organ donor.
25 Sec. 7. An insurer who violates this chapter commits an unfair
26 and deceptive act and practice in the business of insurance under
27 IC 27-4-1-4.
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COMMITTEE REPORT
Mr. President: The Senate Committee on Insurance and Financial
Institutions, to which was referred Senate Bill No. 111, has had the
same under consideration and begs leave to report the same back to the
Senate with the recommendation that said bill DO PASS.
(Reference is to SB 111 as introduced.)
BALDWIN, Chairperson
Committee Vote: Yeas 6, Nays 2
_____
SENATE MOTION
Mr. President: I move that Engrossed Senate Bill 111, which is
eligible for third reading, be returned to second reading for purposes of
amendment.
HUNLEY
_____
SENATE MOTION
Mr. President: I move that Senate Bill 111 be amended to read as
follows:
Page 9, between lines 4 and 5, begin a new paragraph and insert:
"Sec. 4. As used in this chapter, "living organ donor" means an
individual who:
(1) has donated all or part of an organ; and
(2) is not deceased.".
Page 9, delete lines 5 through 9.
Page 9, between lines 9 and 10, begin a new paragraph and insert:
"Sec. 5. As used in this chapter, "organ" means a human:
(1) kidney;
(2) liver; or
(3) lung.".
Page 9, line 10, delete "Sec. 5." and insert "Sec. 6.".
Page 9, line 22, delete "Sec. 6." and insert "Sec. 7.".
(Reference is to SB 111 as printed January 17, 2025.)
JOHNSON T
SB 111—LS 6295/DI 154